Panel pulls up CCI on airfares

A parliamentary panel has pulled up the Competition Commission of India (CCI) for watching silently airlines charging exorbitant fares during the recent Jat agitation in Haryana and at the time of making last minute bookings.

Besides, the Parliamentary Standing Committee on Finance has sought to know the preparedness of the government to “proactively intervene” in instances of cartelisation, price parallelism and abuse of dominance, especially in the wake of new business models such as electronic and mobile commerce.

In a report tabled in Parliament on Thursday, the panel said that it took up the case of airlines charging exorbitant fares during the recent agitation in Haryana and also from passengers, who reserve their seats at the eleventh hour.

“CCI, which is empowered to examine anti-competitive conduct not only in India but also on acts taking place outside India, watched silently and only now on being pointed CCI has woken up and have informed that the issue of abnormal rise in airfare is currently under consideration of the Commission,” it noted. CCI comes under the administrative control of the ministry of corporate affairs.

Further, the panel said it would like to be apprised of the outcome in the case at the earliest.

Earlier, there have been concerns expressed from various quarters, including from MPs, that air tickets were priced very high during certain periods.